Bitcoin Becomes Bearish 🐻

Bitcoin Becomes Bearish

On Friday, Bitcoin rallied past $40,000 for the first time ever, almost reaching $42,000. Bitcoin was up over 300% in 2020. But what was the catalyst for the continued success of Bitcoin? Rallying past the $30,000 mark a little over a week ago, Bitcoin is quickly gaining traction with young investors and institutional investors alike.

Unlike Bitcoin’s 2017 rally driven mainly by retail investors, Bitcoin’s 2020 rally is driven by big institutional investors. Like gold, Cryptocurrency is seen as a hedge against inflation, which makes investing in Cryptocurrencies like Bitcoin attractive. And amid the uncertainty caused by the pandemic, many retail investors are using Bitcoin as a safe haven, like gold.

Institutional investors were initially skeptical about investing in Bitcoin. Cryptocurrency is a relatively new instrument, so investors weren’t that confident putting their money in such a mysterious instrument. But, as Wall Street billionaires began to publicly support and invest in Crypto, mainstream investors have become more confident and bullish on cryptocurrencies like Bitcoin, driving this massive rally. 

Mobile payment company Square and business software company MicroStrategy have added millions of dollars of Bitcoin to their balance sheets. And as Bitcoin’s popularity continues to grow, PayPal has added support for cryptocurrency transactions, making crypto accessible to millions of potential buyers.

Despite the 2020 rally, on Monday morning, Bitcoin dropped 20% to $31,000. Bitcoin is now in a bear market. As Bitcoin gains traction with institutional investors and retail investors alike, it will be interesting to see what happens to Bitcoin in the new year.

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:

More Posts

What is a kids brokerage account?

23 March, 2023

A kid’s brokerage account is more accurately called a custodial account. This is a brokerage account that parents or legal guardians can open on behalf of their child.

Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community.The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results.Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such.Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.